U.S. Wants Oversight of Sprint-Softbank Deal

3/28/2013 8:30AM

The U.S. government wants oversight as a condition for approval of Softbank's pending acquisition of Sprint over fears of spying by Chinese suppliers; BlackBerry posts a surprise profit; Who's the next Jamie Dimon. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... the ... concerns over China have brought the U S government into Softbank's pending acquisition of France ... good morning it's Thursday March twenty eight welcome to the new sub I'm Kelsey Havre ... also this morning former South African leader Nelson Mandela is back in the hospital will have details coming up ... and will take a look at who is in line to be the next Jamie Dynan ... but first the Wall Street Journal's Spencer on teh has exclusive details on new developments in the pending Softbank Sprint Deal Spencer good morning thanks for joining us ... due ... to just is really shaping up here in this D all that I answer interesting we take a look at it from the perspective of U S relations with China ... sure ... so this is all tied to the Softbank's twenty billion dollar acquisition Springs ... that in order for a foreign company to could to control the U S company ... there are certain approvals at the companies to go through when his national security issues in state ... the government really gets involved and so what we've learned is that ... U S government is seeking oversight of telecom equipment purchases as a condition for approving ... Softbank's up acquisition of ... Sprint ... and a lead they had actual veto power in this field ... that's the really interesting part ... you know there's a good trade rules in this political economic concerns with respect to China because the U S and China have a very tense relationship rate now ... and so the US ... does not want to put itself in a position to be able to ... ban specific foreign companies ... from doing business in Latin America and so ... what we've learned is that they're writing this on port security agreement with Sprint and Softbank and the language of the agreement is going to ... the much for today it's going to basically iam ... require that the Cup is cooperating with the government of national security concerns or public safety concerns and a half with addresses concerns of government ... write the thing you mention in tensions are high over accusations of computer hacking in and tramway LTTE in Chinese suppliers ... of excited that Daddy are buying ... a ... piece that out here but when you're talking about this this and in you mention some tensions between ... the U S and China over accusations of ... hacking and that was still intrigued secret that type of thing so how the Chinese reacted to this so far ... right so ... this into this agreement between four and is being negotiated which is not done but it is getting close to being done ... there is also a little provision I was talking to the spending of dollar present Obama signed this week ... I'm that that little provision that good ol' of effectively dead federal dollars would be instead I it's the right reasons don't be ... from companies on phones is directed are subsidized by the People's Republic of China ... and so this morning ... due to bring the theme in China with the foreign ministry spokesperson ... and it's been came up in our story came up ... having the spokesperson said that ... she was urging the US to abandon this approach ... by quote he said the law uses Internet security as an excuse ... the disk or mandates against Chinese firms ... is doesn't hold mutual distrust between the U S and China and it appears in trade and economic relations between the two countries so ... the religion's Ardagh's has been in the sea green men and is moving in spending bill is is is throwing fuel on the go slow burning fire to it so it's that ... it's on the job after being as tensions ... that the big deal right now the negotiations still going forward at the time ... yes negotiations are ongoing but we've been told that ... the broad outlines the alert was largely agreed upon ... one when challenged reporting on this story is that ... the so-called Sophia's process which is the group interagency group in Washington never did his transactions ... that all national security concerns ... it is completely secretive they don't really ... disclose anything in public that the related review going on with this with a group called team Telekom in Washington ... I would let the DOJ that's also very secretive ... so ... we may never actually see the final agreement disclosed in public but that was once I know we saw a few weeks ago which was ... when the government approves ... Deutsche Telekom is um it's absurd T Mobile USA there tripartite to be just ... to prove that a deal as well as the sea get ... any in that approval order ... there was an appendix that mentioned ... men and to the network security agreement which was somewhat similar to the water ... we've heard about the negotiated trades friends and saw the German government ... write ... to thank you so much for joining us to bring up this point this was the story and we appreciate it ... write to Anna for the Vatican read much more on this ... on WS J dot com ... I'm coming up all of the latest on Nelson Mandela's health stay with us ... I ... breaking news this morning at Nelson Mandela South Africa's anti apartheid leader in the country's first black president has been hospitalized with a recurring lung infection ... Mandela who is ninety four has become increasingly frail has been hospitalized several times over the past year ... this time the Nobel laureate was admitted to the hospital just before midnight due to the lung infection ... according to current President Jacob Yuma ... that will keep you updated on that throughout the day ... by taking a look at the markets Research in motion the makers of the BlackBerry handily beat Wall Street's expectations posting a profit boosted in part by the wants of the new BlackBerry ten year with more is Michael Casey Michael thanks to being anti hate to see if the black rates and seemed to really ... this is ... a little into boom of the of the money so stomach to his colleague and Jason went to see was critical after that the tooth ... better than expected core is in the summer and then she got a profit the market was looking for twenty nine St last ... May to twenty two cent loss of ten to twenty nine cent profit says that a penny ... down ... and in part this is being driven by the horses eat in the summer million units which was going expected ... and this is all with this aggressive to stand around the fulsome Heinz a new CEO has been charged with delivering ... a lot of progress to the delusions of Saud is an ongoing rise if it because it was about ... half Thomas's ETN is just like you know those who isn't but buried on Heinz it up as revising and updating their defiance of Tysabri newcomers to this ... this is the enormous challenges still ahead of course this is because traffic uses real money ... Apple and Samsung that says that should be doing business muffins rise has been an ongoing story but ... to three years now ... that what about the jobless claims for jobless claims came in and out ... they were ... so that this week we've seen some time were a bit of a disappointment screen and fifty seven thousand who with written forty thousand ... still not horribly and the ... high number that would ... indicate serious Robinson lead market is certainly ... a sign that this this ... can benefit the trend we've seen until now might not continue to see how that pans out ... GP general so Al Bundy point four percent up or focus and we were looking for point five seven with less expected that this is this that as the Fed of course the final estimate that fourth-quarter GDP ... and I'm ... you know we looking at the recently for a total loss in the fist us know we can to to protect its own contractions are from one that is or one percent ... I'd day in the second is that now arrest infected tended to be slightly better color than expected and consensus up for a relatively positive ... to a score of the market's rally eyes and I said I'm not too happy today and ... that China can now this been doing this repeatedly announcing various discussions on winning this concerned about prop up the bubble that ... defined her concerns the lack of atomic time to make his announces it has impacts on on the sale of goods in the reasons as result patients his eyes and ... as you can see stock hit a little bit of an awful when really what she knew the fullest as Cyprus banks to reopen in the news ... is that the police ... and in you that ... the defendant to do to form a new government this was the big issues in the markets get the banks are really entity ... thanks alot ... laying Avenue a nice day ... looks like it has been chaos in this age the people after taking the streets in peaceful and so ... on the of the fun of it was probably because this cover controls a person who had taken three hundred dollars ... for the euro zone sovereign ... from ... from the banks ... and they can make travel with a more than three thousand euros on it ... it is a fairly strict draconian controls more who confronted with the money to stocks of Micra happy society when that but it's what ... three stocks to watch the slide in addition to to study in the losers bucket is the maintenance this isn't done considerably better as result of these ... in in in the predicted that the pre market trading this morning as result of those innings ... we're also looking at so I am on ... a aam unit to the candidate if there was of course ... as the story there is that I'm ... paid the bankruptcy Judge Stephen Detroit faith in the US Airways which is to see suppose the good news for them and use it ... but he soon came down ... heavy on severance package that was too good to be given to the CEO Tom Horton ... said the twenty two million dollars ... in May was a step out of line with what to do the panel then ... onto that was what one to watch ... the other one I would go for Metro PCS ... a lot of interest even manages to monitor aggregate ... a lot of battles the hill about Dell and post it open for about ... about the Sprint and Softbank midget ... in the NIT pitcher PCS case finances which is pretty ... important the adviser's prophecy buys Intuit optional Russia but has advised them against accepting the offer from door telecoms ... T Mobile ... this ... comes as the support relief is an activist shareholder as John Paulson of Paulson and Coach ... and Schoenfeld Asset Management the two to the biggest falls ... was ten percent of ... MetroPCS and he has been very outspoken long motion films sign that he ... was talk on offer is just two months a bias This is a new ... player in the campus to make it ... hotter of course to get the deal through two whole reasonable ... certainly some to watch today is the lessons remind people that we actually had on Opinion Journal yesterday CEO of the airline industry but want to check that out a timeline for them as the offensive end but they're a fall things like the Pistons are trying to fix it ... I so look at Wall Street was in line to be the next Jamie diamonds will have that coming up ... here on the News Hub ... stay with us ... his Wall Street lacking leaders now that Jamie diamonds once impenetrable than a year has been cracked who was the next to stand out among the masters of the universe ... MarketWatch columnist David Weidner joins us this morning from San Francisco David thanks for giving up early with us this morning ... write your back and well thanks so much ... yet we get things the next day we got out of the Jamie Dynan is still out you know here and weeding out Wall Street have JPMorgan Chase but ... certainly not in the same light that he was say a year so now so what's the what's happened here ... his chief executive and chairman Chen brawl at JPMorgan Chase and talking about ... is ... his role as a spokesman for the industry the kind of capital though ... the first recognizable figure the guy with the most clout ... and of course the reputation has taken a big ... increase ... over the last year with the London whale ... Beach to ... the trading loss ... with the issue ... of the mortgage securities ... when the interest rate ... scandal and J P was wrong that so ... there's a lot of people ... are inside the bank ... of the industry and in the public at large were just kind of tired and Jamie Dunn is a very forceful ... but ... you know ... sometimes ... somebody who is the charismatic can come up with a little bit Erica ... depending on circumstances and I think a lot of people that ... are tuning erupt reading about me certainly ... other reports that you know he's using his clout in Washington so yet if the Senate subcommittee actually said that he misled investors ... and the publican in the third pretty harsh statement coming from the asset the Senate subcommittee that's looking into this ... write in this real big change from even just your job with ... interest when Reggie retirement would go for a congressional panel ... and audience ... in ... the end of the panel that you know they were saying thank you you know that on their Grella ... can never say no thank you Mr Diamond now receive your mortgage ... that's over ... I and I are any readers out there and to add and say what the boss Lloyd Blankfein of Goldman Sachs or Michael Corbat Citigroup are they in the same we now step here or now ... that's the ... question and so far ... the problem with those and those people in those institutions is for all of them are new so they have ... been around long enough ... secondly in other institutions are some damage ... you know the Skittles at the Goldman Sachs the mortgage issues in the end of America ... Citigroup you know they received the biggest bailout from the banks ... in the in another problem is is that they're just your friends the Kelsey's there's just there's fewer CEOs out which nobody ... you know we have four or five ... banks that basically are making bags for global banks in this country ... and ... that's that's three small pool to choose from and are looking for somebody to step up and be a ... leader ... so honestly I mean it but the reality is that the industry's best opportunity there for better or worse ... because he had the personality ... and ... the industry doesn't everyone else ... and in it so it is indicating it will come off the financial crisis where ... it was so much expose as December that people call shenanigans that went on on a Wall Street and Peck in part led to where we were the debts that set the industry Fallon yet ... to say there's so few leaders are coming out in India having being the leader Jamie diming even come off a little tartness to me know the the the the the public's trust in the system ... is is getting is gonna get better after the crisis there is even getting worse ... well that oversee his record for raising the Financial Industry warts and all the work to do this you know every every day ... I was making mistakes every brokerage firm was was dealing ... in securities and training that ... in retrospect was ... inappropriate or questionable ... you know the ... no one will work right we're seeing the true nature the industry and energy retirement ... was no better or worse than anybody else he had his own now ... his institution at a ... loss so I think and in some ways ... the the is the ... the industry itself needs to repair its reputation ... by going on and and and being better clients and doing their work and not getting caught in so many scandals ... and that'll go long way toward reducing people ... who will have clouds that can go ... to the case of Washington and a main street ... a Wall Street isn't that terrible ... first they have to ... make it not terrible but actually ... it ... that I think they kidding right ... every month or so or another so it's another investigation more insider trading ... this ... so ... the strategically not to purge ... the Number two leaders urge ... market or ... acted sapping effect from getting up and having that second third cup of coffee and tea in the way we appreciate it ... I still think that ... one thank you all for joining us this morning on the news of fate and the beest dot com for all your braking is throughout the day ... great everyone I'm Kelsey Havre ...